Your boss, the CEO, asks you to analyze our company'sperformance in relation to our...

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Accounting

Your boss, the CEO, asks you to analyze our company'sperformance in relation to our competitors, but she only gives youa short timeframe for the project. You can do this either bycomparing the firms' balance sheets and income statements or bycomparing the firms' ratios. If you only had time to use one meansof comparison, which method would you use and why? What are thedrawbacks of using your selected method?
It is commonly recommended that the managers of a firm comparethe performance of their firm to that of its peers. Increasingly,this is becoming a more difficult task. Explain some of the reasonswhy comparisons of this type can frequently be either difficult toperform or produce misleading results

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1 I would use the firms ratios because will study them I would be able to have a clear picture on the complete financial health of the Company The balance sheet has all the information concentrated but the financial ratio See Answer

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In: AccountingYour boss, the CEO, asks you to analyze our company'sperformance in relation to our competitors,...Your boss, the CEO, asks you to analyze our company'sperformance in relation to our competitors, but she only gives youa short timeframe for the project. You can do this either bycomparing the firms' balance sheets and income statements or bycomparing the firms' ratios. If you only had time to use one meansof comparison, which method would you use and why? What are thedrawbacks of using your selected method?It is commonly recommended that the managers of a firm comparethe performance of their firm to that of its peers. Increasingly,this is becoming a more difficult task. Explain some of the reasonswhy comparisons of this type can frequently be either difficult toperform or produce misleading results